CVTech-IBC of Drummondville, a firm that specializes in the design and manufacture of continuously variable transmissions (CVTs), announces an investment in the capital stock of the company with the support of National Bank Private Investment (NBPI). The investment will be used by management to buy the shares of the president and majority shareholder, Alain Charest, and Operations Manager, Marc Dionne.
This transaction finalizes the transfer of the company initiated by its president a few years ago when he formed a solid management team to ensure succession. David Ouellet is being named the new President and Chief Operating Officer. He will be supported by the existing management team to continue to grow the company.
National Bank Commercial Banking and Investissement Québec assisted with the transaction by arranging bank financing.
Founded in Drummondville in 1969, CVTech-IBC specializes in the design and manufacture of continuously variable transmissions for cars and recreational and utility vehicles. A leader in its field, the company is present in markets around the globe including Canada, the United States, Europe and Asia, and employs close to 200 specialized workers in the region.
"From the outset, the National Bank Private Investment (NBPI) team has been the ideal partner to ensure a smooth transition because they value our know-how and our desire to make sure that CVTech-IBC continues to grow and thrive in Quebec. The relationship formed naturally from the first meetings and my team is happy to continue working with such a valuable partner. I will continue to be involved by sitting on the board of directors to be formed. This announcement marks an important milestone for CVTech-IBC that is embarking on a new growth phase," commented Alain Charest of CVTech.
"CVTech-IBC has an excellent reputation in the market owing to its high-quality products and services and its innovative culture that is evident in all its activities. NBPI firmly believes it can guide the company through the next phase of its growth by supporting the development and marketing of new solutions and optimizing its processes," noted Luc Ménard, Executive Vice-President, Managing Director and Head of Private Investments at National Bank. "SMEs are the backbone of our economy and we're seeing more and more business transfers. That's why it's so important to offer them the support they need at this key juncture. It ensures not only the prosperity of the company itself, but also of our economy."